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International Business Times
International Business Times
Business

Chinese Automakers Accelerate Global Expansion as Domestic Sales Decline

Chinese tech giant Xiaomi unveiled its first EV model, the SU7, on Thursday, when it detailed plans to enter the competitive electric vehicle (EV) market.

Chinese automakers are rapidly increasing their overseas sales as weaker demand at home continues to pressure the industry.

New data released by the China Association of Automobile Manufacturers shows that passenger car exports surged in March, even as domestic sales fell for a fifth straight month.

Passenger car exports jumped 82.4% year-on-year in March, reaching about 748,000 units.

According to AP News, this was a sharp rise from February's 586,000 vehicles, showing strong momentum in global shipments.

Electric vehicles played a major role in this growth, with exports of new energy passenger vehicles—such as battery electric cars and plug-in hybrids—rising more than 140% compared to the same period last year.

These exports also climbed 31% from February to around 363,000 units.

Major Chinese automakers, including BYD and Geely Auto, are leading the overseas push.

Both companies have expanded production and sales networks in international markets as they aim to reduce reliance on slowing domestic demand.

Chinese brands have also gained stronger presence in regions such as Europe, Latin America, and Southeast Asia.

Chinese Auto Sales Drop as Exports Surge Globally

Analysts say global conditions may further support this trend. Chris Liu, a senior analyst at Omdia, noted that rising fuel prices and global energy concerns could encourage more drivers to switch to electric vehicles.

"A sharp rise in fuel prices changes that," he said, referring to how consumers may reconsider traditional fuel-powered cars.

The global expansion comes at a time when China's local auto market is under pressure.

Domestic passenger car sales dropped 19.2% in March compared with a year earlier, falling to nearly 1.7 million units, US News reported.

It marks the fifth consecutive month of decline, driven by reduced government incentives, intense price competition among brands, and weaker consumer spending linked to the country's ongoing property market slowdown.

Industry experts believe the shift toward exports may help balance the slowdown at home. UBS auto analyst Paul Gong said overseas demand could help offset domestic weakness over the full year.

He also predicted that international passenger car sales by Chinese automakers could grow by 20% or more this year.

Originally published on vcpost.com

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